According to our analysis USDJPY and EURUSD moved 41 pips on US Jobless Claims and US BLS Producer Price Index (PPI) data on 12 June 2025.
USDJPY (20 pips)
EURUSD (21 points)
Charts are exported from JForex (Dukascopy).
Jobless Claims Steady, But Trends Show Rising Insured Unemployment. Producer Prices Edge Up: What It Means for the U.S. Economy
Published: June 12, 2025
The latest economic data paints a picture of a U.S. economy that’s holding steady—but showing some signs of strain beneath the surface. Two major releases today from the Department of Labor and the Bureau of Labor Statistics provide insight into both the labor market and inflation trends.
Unemployment Claims Show Stability in New Layoffs, But Pressure is Mounting
Initial jobless claims remained flat at 248,000 for the week ending June 7, 2025 (seasonally adjusted), unchanged from the prior week's upwardly revised figure. However, the 4-week moving average rose to 240,250, the highest since August 2023—an early signal that labor market softening may be gaining momentum.
Key takeaways:
Continued claims (insured unemployment) climbed to 1.96 million, up by 54,000, the highest level since November 2021.
The insured unemployment rate ticked up to 1.3%, from 1.2% the previous week.
Unadjusted initial claims rose 17.1% to 244,752, reflecting real increases in layoffs.
Notable State-Level Trends:
Increases: Kentucky (+3,967, due to manufacturing layoffs), Minnesota (+2,364, education sector), and Tennessee (+1,764).
Decreases: Michigan (-3,783), Florida (-1,456), and Massachusetts (-1,585) saw fewer layoffs across multiple sectors.
These trends suggest that while broad-based layoffs remain limited, certain industries—particularly manufacturing and education—are facing headwinds.
Producer Prices Inch Up: Inflation Pressures Persist in Select Areas
The Producer Price Index (PPI) for final demand rose 0.1% in May, following declines in April (-0.2%) and March (-0.1%). Over the past 12 months, the index has increased 2.6%, signaling moderate but persistent inflationary pressure on wholesale goods and services.
Breakdown of May PPI Data:
Final Demand Goods: Rose 0.2%, driven by increases in tobacco products, processed poultry, and roasted coffee.
Final Demand Services: Up 0.1%, thanks to higher margins in machinery and vehicle wholesaling, though airline passenger services dropped 1.1%.
Core PPI (less food, energy, and trade services): Also increased 0.1%, with a 12-month increase of 2.7%.
Intermediate Demand Trends:
Processed goods for intermediate demand increased 0.1%, but unprocessed goods dropped 1.6%, driven by an 18.7% plunge in natural gas prices.
Prices for services for intermediate demand also rose slightly, lifted by increases in metals and minerals wholesaling and property management fees.
Economic Interpretation
Together, these two reports reflect a labor market with pockets of weakness and a producer-side inflation landscape that is not retreating quickly. While jobless claims aren’t yet surging, rising continued claims hint at a cooling labor market—potentially making it harder for displaced workers to quickly find new jobs.
At the same time, the small rise in producer prices—particularly in core goods and services—could keep inflation concerns alive at the Federal Reserve, which has paused rate hikes but continues to watch price dynamics closely.
What to Watch Going Forward
Will continued unemployment claims persist above 1.9 million?
How will consumer inflation respond to rising wholesale prices?
Will industries like manufacturing and education see further layoffs?
The June data provides a snapshot of an economy in delicate balance—neither overheating nor in clear decline. As the Federal Reserve weighs its next moves and policymakers monitor both job and price data, the coming months will be pivotal for understanding the full trajectory of the U.S. recovery.
Disclaimer: This blog post is for informational purposes only and should not be construed as financial advice. Always conduct thorough research and consider seeking advice from a financial professional before making any investment decisions.
Sources: https://www.dol.gov/ui/data.pdf, https://www.bls.gov/news.release/ppi.nr0.htm
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